Welcome to the Fall 2018 issue of the Novantas Review.
This issue focuses heavily on deposits and for good reason: they are top of mind. Bankers are trying to figure out how to acquire new deposits without wrecking the financials. Quarterly earnings reports show that the biggest banks are scooping up deposit market share. And customers are lamenting the paltry interest rates they are getting from their longtime banks, prompting many to seek higher rates from local competitors, national players and new entrants, like direct banks.
We kick off this issue by digging into the big question that is on the mind of bankers everywhere: what to do about the customers who get virtually no interest on their deposits? The back-book conundrum has implications across institutions and we provide some strategies for dealing with the issue.
We also offer up some compelling insights, courtesy of our proprietary data, about consumers who are switching from low-rate accounts to ones that pay them more. And we offer some guidance about how to implement a precision-pricing optimization program that achieves your goals.
You will also get a peek inside some of our recent events, including a two-day symposium that explored how to build a more confident and productive sales force and a webinar about the upcoming CECL requirements.
As always, we welcome your feedback on the Novantas Review. Please respond to this survey to share your opinion about what you read in these pages. It will only take a few minutes to complete and we appreciate your input. In the meantime, feel free to reach out to Robin Sidel at email@example.com with suggestions and comments.
For a long time during the current rate cycle, the continued expectation of rising betas was akin to the “Boy Who Cried Wolf.”
Long one of the most under-appreciated and least understood categories for banks, the role of the savings accounts may be on the brink of change due to the industry’s widespread disruption from technology.
Customer who seek a higher rate put the bank in a defensive position that often ends with the bank offering a rate that is above the optimal and fair price for that client’s deposit.
After a week away this summer, my husband and I came home to an overstuffed mailbox that contained no fewer than seven offers from banks that were vying for our checking business with rich offers worth hundreds of dollars. We tossed every last one of them in the circular file.
So you think you should launch a direct bank? After all, it could be a great way to scoop up deposits across the country at a time when most banks are struggling to acquire new customers and hang onto the ones they have.
The industry-wide scramble for deposits makes it all too clear that surgical pricing is the wave of the future.
Gerard Cassidy of RBC Capital Markets sits down with Novantas and discusses the banking industry.
It’s a question that is being debated in corporate offices across the banking industry: “What should we do with the back book?”
Novantas recently hosted two webinars with more than 50 bankers to discuss recent deposit trends.
Digital innovators like Amazon, Netflix, Instagram, Peloton, and Stitch Fix have completely transformed consumers’ expectations. From highly-targeted ads delivered in social feeds to tailored landing pages, personalized recommendations and relevant content, these companies demonstrate just how well they know their customers at an individual level.
As more Millennials* seek “must have” mobile banking services, they increasingly want to be untethered from their bank’s physical locations. More than three-quarters of them would consider a bank that doesn’t have branches.
It’s never easy to manage employees, but when you throw in widespread industry disruption, the job gets even tougher.
Novantas teamed up with 4most, a U.K.-based credit risk consulting firm, in a webinar aimed at helping banking clients consider the practical implications of a big new financial accounting regulation that is coming down the pike.
Called “CECL: Beyond the Regulators,” the Sept. 12 webinar explored how banks can use the analysis required to meet the regulation as a springboard for assessing lending risk in the future.